Hostels Global Market Report 2024

A hostel is a form of budget-friendly shared accommodation with communal areas. Typically offering dorm-style rooms for travelers, modern hostels also provide private rooms and hotel-such as amenities. Hostels aim to create a sociable atmosphere and are generally more affordable compared to hotels.

Hostels come in various types, catering to students, workers, and others. Student hostels are structures provided by educational institutions to accommodate their enrolled students. Booking options include online bookings, direct bookings, and others, with service price points ranging from economy to mid-range and luxury.

The hostel market research report is one of a series of new reports from The Business Research Company that provides hostel market statistics, including global market size, regional shares, competitors with a hostel market share, detailed hostel market segments, market trends and opportunities, and any further data you may need to thrive in the hostel industry. This hostel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The hostels market size has grown steadily in recent years. It will grow from $6.35 billion in 2023 to $6.64 billion in 2024 at a compound annual growth rate (CAGR) of 4.6%. The historical period's growth can be ascribed to robust economic expansion in emerging markets, the increase in the global population, a surge in disposable income, the embrace of solo travel, and a rise in paid leaves worldwide.

The hostels market size is expected to see steady growth in the next few years. It will grow to $8.06 billion in 2028 at a compound annual growth rate (CAGR) of 4.9%. The forecast period's growth can be credited to millennial travelers, increased expenditure on leisure activities, shifts in travel trends, the resurgence of staycations, government initiatives, rising internet penetration and smartphone usage, and an uptick in budget-conscious travelers. Major trends in the forecast period encompass a focus on hybrid hostels, an emphasis on eco-friendly hostel models, the promotion of yoga hostels for health benefits, the utilization of digital technology in hostel management systems, and the adoption of artificial intelligence technology for enhanced engagement.

The growth of the hostel market is significantly influenced by the increasing trend of solo travel. Solo travelers are opting for hostels due to their cost-effectiveness, value for money, experiential accommodations, convenient locations, and the opportunity to connect with fellow travelers. According to Solo Traveler's 2021-2022 survey, 70% of respondents expressed readiness to travel internationally in 2021. Irrespective of age, a higher number of people indicated a typical weekly expenditure of $1,000 to $2,000 on travel. Google searches for solo travel reached a new high in the current month, quadrupling since April 2020, with evident demand across all age groups. Consequently, the surge in solo travel is a key driver behind the growth of the hostel market.

The hostel market is anticipated to experience growth due to the increasing migration of students for educational purposes. Student migration involves the movement of predominantly young individuals from their home regions or countries to pursue higher education in foreign countries or different locations within their own country. Hostels capitalize on their proximity to educational institutions, affordability, flexibility to cater to student needs, and their role in fostering a sense of community among diverse student populations. In November 2022, the Institute of International Education reported a 4% growth in the enrollment of international students in U.S. higher education institutions for the academic year 2021/2022, with a total of 948,519 students from over 200 different places of origin. Consequently, the increasing trend of student migration for education is a driving force behind the growth of the hostel market.

A noteworthy trend in the hostel market is the emergence of hybrid hostels. These hostels are designed to cater to the preferences of young urban professional travelers by blending the affordability and social aspects of dorm accommodation with the upscale amenities offered by traditional hotels. One example is the centrally located Stay Hybrid Hostel in Thessaloniki, situated near the Ladadika and Valaoritou areas. Each room at Stay Hybrid Hostel is air-conditioned and features unique music references. The hostel provides private rooms with individual amenities, bed tables, a small desk, a wardrobe, and a flat-screen TV.

Leading companies in the hostel market are incorporating boutique hostels into their offerings as a strategic move to maintain a competitive edge. Boutique hostels represent a category that combines aspects of the traditional hostel experience with a more sophisticated and distinctive ambiance. In January 2021, India-based hospitality company Leisure Hotels Group introduced The Hideaway Bedzzz, a new boutique hybrid hostel-hotel. This establishment caters to young travelers and backpackers, providing smart guest rooms, premium bunk options, a recreational lounge, and a rooftop cafe. The hostel facilitates in-house entertainment and organizes outdoor activities such as treks and white-water rafting to encourage connections among like-minded travelers.

In April 2021, Collective Hospitality (CH), the owner and operator of Slumber Party Hostels (SHG), Path, and Socialtel brands, successfully acquired Bodega Hostels for an undisclosed sum. This strategic move aimed to enhance Collective Hospitality's market share, making it the largest hostel company in South East Asia and the fourth-largest globally. With 25 properties and over 2,500 beds across Thailand, Indonesia, and Cambodia, the acquisition solidified CH's position. Bodega Hostels, founded in 2013, manages nine hostels in key tourist areas in Thailand, including locations in Bangkok (Khaosan and Sukhumvit Road), Chiang Mai (Old Town and Thapae), Koh Phangan, Mae Hong Son, Phuket, Ao Nang, and Siem Reap.

Major companies operating in the hostels market report are A&O Hotels and Hostels, Che Lagarto, St Christopher's Inns, Vietnam Backpacker Hostels, Loki Hostels, goSTOPS, MEININGER Hotels, Bohemian Hostels, Hotelogix PMS, Sundance Hostel, Beijing Downtown Travelotel, 11 Youth Hostel, Hostel One, Lijiang Garden Inn, Mad Monkey Hostels, Chengdu Dragon Town Sichuan Style Hostel, The Hosteller, Kunming Cloudland Youth Hostel, Viajero, Grand Pearl Hostel for Boys, New Teddy Hostel, Plus Hostels, Toc Hostel & Suites, OPERA Property Management System (PMS), Backpacker Panda, Generator Hostels, Hostelling International, Posadas Group, YHA England & Wales, Clink Hostels, Mix, Safestay PLC, Combo Hostels, Vedanta Wake Up, Freehand Hotels, Hostelling International Canada, high garden hostels (Nigeria), Canada Hostels, Wombat's Hostels, Cloudbeds, Pakachere Backpackers Lodge, Hotels. Ng, WOKSEN, Wild Rover, Rodamon Hostel, Gaviota, Atlantica, Hop Inn, Green Tortoise Hostel, Moustache, Safestay, The BIG Backpackers, Dar Surf Hostel, HomeStar - Jumeirah Beach, Nomads, elmenus, Pappi Chulo, International Youth Hostels (YHAI), Azalai HotelsTented Adventures, The Hostel Crowd

Asia-Pacific is the largest region in the hostels market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global hostels market during the forecast period. The regions covered in the hostels market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the hostels market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain

The hostel market consists of revenues earned by entities by providing hostels and related services. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Hostels Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on hostels market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for hostels? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The hostels market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Price Point: Economy; Mid-Range; Luxury
• 2) By Type: Students; Workers; Other Types
• 3) By Booking: Online Bookings; Direct Bookings; Other Booking Modes
• Companies Mentioned: A&O Hotels and Hostels; Che Lagarto; St Christopher's Inns; Vietnam Backpacker Hostels; Loki Hostels
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.